Government has proposed some relief on investment made by service class people . It means the more they save, the more they can save Income Tax. But the question is whether service class people are in a position to save money enough to get tax relief.
GOI has sent a message to middle class families to save more and more for their future and help government in turn to invest more and more. It means GOI want to stop purchasing and reduce purchasing capacity of service class people . On the other hand they have given tax relief to corporate by reducing IT from 30% to 25% which indicates that GOI in interested in more and more production. But here the question arises that if the buyers are not in a position to buy what is the purpose in enhancing the producing capacity of the producers.
Further , budget has added fuel to fire so far as middle class is concerned. Because middle class people , particularly from upper middle class will have to spend more on many services like hotel, beauty parlour, cinema, air ticket booking from agents, courier charges and all others which attract service tax . On the other hand rich class people will have more surplus and earn more profit to spend more and more which will ultimately lead to widening of gap between rich and the poor.
In brief , though budget enhances the scope of savings and investment , it curtails the scope of consumerism. So far as poor class people are concerned, they are neither so much benefitted from budget nor have they lost anything out of budget provisions. High expectation from budget proved wrong and wondering in dreamland.
GOI has not proposed any regulating body to control and check ongoing exploitation in real estate sector, education sector or medical care sector facilities. Large scale loot from students of other education, loot from patients in private nursing home, exorbitant profit making by apartment builders goes unattended. Nothing has been done to provide clean water, 24X7 power ,quality medical facilities , road connectivity , hassle free administrative work etc for common men. No relief to poor farmers and poor traders .
Of course there is commendable rise in the prices of tobacco products and that of wine. And so on.............Commendable steps has been provided to curb black money creation and to stop money going abroad in illegal way. But no step has been proposed to cure ailing public sector banks in particular and to improve the health of PSUs in general. All good hopes stands shattered .
'Budget a big disappointment for middle class'
-The Hindu-28.02.2015 5.p.m.
The Union budget for the financial year 2015-16 presented by Finance Minister Arun Jaitley is a big disappointment for the poor and the middle class people. The budget offers no personal taxation relief to tax payers. There is no announcement regarding the steps taken for the recovery of the economy. The statistics provided by the NSO on Friday which is based on revised parameters set out by the organisation cannot be believed.
Raise IT slab from Rs 2 lakh to Rs 5 lakh, demands Arun Jaitley-20th April 2014
AMRITSAR: BJP leader Arun Jaitley today demanded a raise in the Income Tax ceiling from Rs two lakh to Rs five lakh, which he claimed will benefit thirty million people. Advocating low tax structure, the BJP leader said,"Direct Tax should be reduced. If the Income Tax limit is raised from Rs 2 lakhs to Rs 5 lakhs, 3 crore people will save Rs 24 crore which will lead to a small impact of 1 to 1.5 per cent of National Tax Fund."
Jaitley claimed that the Vajpayee government kept the rate of interest at 7 to 8 per cent which Congress-led UPA raised to 13-14 per cent.
"Due to this, Trade and Industry are running under loss and closing down, and production has become costly," he said, adding, that is why country like China and Thailand are moving ahead of India.
Jaitley said,"the savings of Rs 24 crore in the pockets of ordinary person by reducing ceiling on Income Tax will lead to increased purchase which in turn will lead to increased VAT and Excise Duty thereby increasing the Revenue".
Speaking on Amritsar's development, Jaitley said Economy of the constituency is dependent on tourists and small businesses.
He emphasised that with the investment of Rs 300-400 crores, 2-3 elevated roads, better roads with construction of 10-12 new bridges together with provision for few concessions and grants to increase tourism by providing special tax concessions to hotels the economy of Amritsar can be strengthened.
Read more in following link
Union Budget: Top Tax Proposals Announced by Arun Jaitley-28.02.2015 NDTV
Finance Minister Arun Jaitley in his first full-year Budget did not hike income tax exemption limits, as he did last year. However, he hiked the tax exemption limits of some allowances.
Here are the tax proposals in the Union Budget:
1) Limit in deduction on health insurance has been hiked from Rs. 15,000 to Rs. 25,000 to encourage people to take health insurance.
2) Health insurance premium deduction for senior citizens has been hiked to Rs. 30,000.
3) Contribution to new pension fund has been hiked from Rs. 1 lakh to Rs. 1.50 lakh.
4) Transport allowance exemption has been hiked from Rs. 8,00 to Rs. 1,600.
5) To provide for social safety net and pension to individuals, an additional deduction of Rs. 50,000 for contribution to new pension scheme under Section 80CCD has been proposed.
6) Wealth tax has been abolished.
Black money: 6 months for voluntary disclosure?-Times of India 01.03.3015NEW DELHI: Finance minister Arun Jaitely proposed to enact a comprehensive law to bring back black money stashed abroad.
"We will curb benami transactions in property deals. The FEMA Act will be amended to incorporate black money provisions," Jaitley announced
Hoarding of black money will lead to rigorous imprisonment of 10 years, the finance minister said.
Bringing back black money stashed abroad has been a key promise of the Narendra Modi government and its first Cabinet decision was to announce the setting up of a SIT to probe black money cases.
When this new law kicks in is not yet known, but some are wondering if there would be a window, perhaps of six months, for voluntary
Budget: Black money laws give unbridled power to agencies, Oppn wary-Hindustan Times 01.03.2015
If the previous NDA regime’s Prevention of Terrorism Act (POTA) became an instrument of misuse and human rights violations by the authorities, new laws outlined in the budget to fight black money threaten to put similar unbridled powers in the hands of enforcement agencies.
Concealment of income and assets and evasion of tax in relation to foreign assets will be prosecutable with punishment of rigorous imprisonment (RI) up to 10 years, and offenders will not be permitted to approach the Settlement Commission; those caught concealing income and assets will be penalised at 300% of the tax due. And not filing returns or inadequately disclosing foreign assets in those returns could result in seven years’ RI.
The measures evoked a strong response from industrialists and Opposition alike.
“The black money law is draconian with imprisonment even for minor transgressions, and it will be a source of harassment. It will also turn out to be ineffective in the absence of sophisticated information gathering systems,” said Mohandas Pai, former finance head of Infosys.
Manish Tewari, senior Congress leader and Supreme Court lawyer who deals in tax matters, said, “It’s simply the re-introduction of FERA. It is, in fact, far more draconian than FERA. It is going to put a huge amount of power in the hands of the Enforcement Directorate, which is really not known for its outstanding probity. But the fundamental question is: If you are sincere in your intention to unearth black money, why this distinction between black money stashed abroad and in India?”
Jaitley announced another proposed law — the Benami Transactions (Prohibition) Bill — to fight black money at home. The bill will be introduced this Parliament session.
“This law will enable confiscation of benami property and provide for prosecution, thus, blocking a major avenue for generation and holding of black money in the form of benami property, especially in real estate,” he said.
Changes in income tax laws will be made so that, effective June 1, all transactions such as loans or deposits or advances for transfer of immovable property are done through an account payee cheque or account payee bank draft or by electronic clearing system through a bank account, if the amount of the loan or deposit is Rs 20,000 or higher.
Jaitley also raised the outlay for the special investigation team (SIT) on black money by nearly 10% to Rs 45.39 crore to help expand its infrastructure and logistics procurement capabilities.